Protectingconsumers

Creating confidence in the building industry

For Builders

All residential builders in the Northern Territory must apply for an annual level of cover with the Master Builders Fidelity Fund before they can build houses, units or extensions for private clients. This does not apply to commercial buildings, transportables or government contracts.

Fidelity Fund Certificates

It is the responsibility of the builder to obtain a Fidelity Fund Certificate for all homes, units or extensions worth more than $12,000.

A copy of the Certificate must be supplied to the home owner.

To get a fidelity certificate, you must

satisfy the Master Builders Fidelity Fund of your eligibility

complete an assessment form and provide financial statements and details about your business structure and construction history, so an independent assessor can determine the value of work you can take on at any one time

the assessment is done by an independent chartered accountant in the ACT and is free

the turn around time is 7-10 working days

you will be advised of your available limit

you can apply for a re-assessment at any time if you think your cap is too low

as you enter into a contract to build, you must obtain a Fidelity Fund Certificate for that work

the Fidelity Fund will monitor your capacity by referring to the value of the contract

the premium for the Fidelity Certificate is payable when you obtain the certificate

a copy must be given to the owner (before you start work) and the certifier (who cannot issue a building permit until they have a copy)

you should keep the original certificate

if the contract later varies by more than 5% (up or down), you must apply for a varied fidelity certificate.

There is detailed information on the scheme on the Northern Territory Government’s Building Advisory Services site at www.nt.gov.au/rbi